Public Act 103-0145
HB2188 EnrolledLRB103 28952 KTG 55338 b HB2188 Enrolled LRB103 28952 KTG 55338 b
HB2188 Enrolled LRB103 28952 KTG 55338 b
AN ACT concerning the fraud.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Act on the Aging is amended by
changing Section 4.04a as follows:
(20 ILCS 105/4.04a)
Sec. 4.04a. Illinois Long-Term Care Council.
(a) Purpose. The purpose of this Section is to ensure that
consumers over the age of 60 residing in facilities licensed
or regulated under the Nursing Home Care Act, Skilled Nursing
and Intermediate Care Facilities Code, Sheltered Care
Facilities Code, and the Illinois Veterans' Homes Code receive
high quality long-term care through an effective Illinois
Long-Term Care Council.
(b) Maintenance and operation of the Illinois Long-Term
Care Council.
(1) The Department shall develop a fair and impartial
process for recruiting and receiving nominations for
members for the Illinois Long-Term Care Council from the
State Long-Term Care Ombudsman, the area agencies on
aging, regional ombudsman programs, provider agencies, and
other public agencies, using a nomination form provided by
the Department.
HB2188 Enrolled LRB103 28952 KTG 55338 b
(2) The Department shall appoint members to the
Illinois Long-Term Care Council in a timely manner.
(3) The Department shall consider and act in good
faith regarding the Illinois Long-Term Care Council's
annual report and its recommendations.
(4) The Director shall appoint to the Illinois
Long-Term Care Council at least 18 but not more than 25
members.
(c) Responsibilities of the State Long-Term Care
Ombudsman, area agencies on aging, regional long-term care
ombudsman programs, and provider agencies. The State Long-Term
Care Ombudsman and each area agency on aging, regional
long-term care ombudsman program, and provider agency shall
solicit names and recommend members to the Department for
appointment to the Illinois Long-Term Care Council.
(d) Powers and duties. The Illinois Long-Term Care Council
shall do the following:
(1) Make recommendations and comment on issues
pertaining to long-term care and the State Long-Term Care
Ombudsman Program to the Department.
(2) Advise the Department on matters pertaining to the
quality of life and quality of care in the continuum of
long-term care.
(3) Evaluate, comment on reports regarding, and make
recommendations on, the quality of life and quality of
care in long-term care facilities and on the duties and
responsibilities of the State Long-Term Care Ombudsman
Program.
(4) Prepare and circulate an annual report to the
Governor, the General Assembly, and other interested
parties concerning the duties and accomplishments of the
Illinois Long-Term Care Council and all other related
matters pertaining to long-term care and the protection of
residents' rights.
(5) Provide an opportunity for public input at each
scheduled meeting.
(6) Make recommendations to the Director, upon his or
her request, as to individuals who are capable of serving
as the State Long-Term Care Ombudsman and who should make
appropriate application for that position should it become
vacant.
(e) Composition and operation. The Illinois Long-Term Care
Council shall be composed of at least 18 but not more than 25
members concerned about the quality of life in long-term care
facilities and protecting the rights of residents, including
members from long-term care facilities. The State Long-Term
Care Ombudsman shall be a permanent member of the Long-Term
Care Council. Members shall be appointed for a 4-year term
with initial appointments staggered with 2-year, 3-year, and
4-year terms. A lottery will determine the terms of office for
the members of the first term. Members may be reappointed to a
term but no member may be reappointed to more than 2
consecutive terms. The Illinois Long-Term Care Council shall
meet a minimum of 3 times per calendar year.
(f) Member requirements. All members shall be individuals
who have demonstrated concern about the quality of life in
long-term care facilities. A minimum of 3 members must be
current or former residents of long-term care facilities or
the family member of a current or former resident of a
long-term care facility. A minimum of 2 members shall
represent current or former long-term care facility resident
councils or family councils. A minimum of 4 members shall be
selected from recommendations by organizations whose members
consist of long-term care facilities. A representative of
long-term care facility employees must also be included as a
member. A minimum of 2 members shall be selected from
recommendations of membership-based senior advocacy groups or
consumer organizations that engage solely in legal
representation on behalf of residents and immediate families.
There shall be non-voting State agency members on the
Long-Term Care Council from the following agencies: (i) the
Department of Veterans' Affairs; (ii) the Department of Human
Services; (iii) the Department of Public Health; (iv) the
Department on Aging; (v) the Department of Healthcare and
Family Services; (vi) the Office of the Attorney General
Illinois State Police Medicaid Fraud Control Unit; and (vii)
others as appropriate.
(Source: P.A. 95-331, eff. 8-21-07.)
Section 10. The Illinois Public Aid Code is amended by
changing Sections 8A-7 and 12-4.41 as follows:
(305 ILCS 5/8A-7) (from Ch. 23, par. 8A-7)
Sec. 8A-7. Civil Remedies. (a) A person who receives
financial aid by means of a false statement, willful
misrepresentation or by his failure to notify the county
department or local governmental unit, as the case may be, of a
change in his status as required by Sections 11-18 and 11-19,
for the purpose of preventing the denial, cancellation or
suspension of his grant, or a variation in the amount thereof,
or by other fraudulent device, or a person who knowingly aids
or abets any person in obtaining financial aid for which he is
not eligible, shall be answerable to the county department or
the local governmental unit, as the case may be, for refunding
the entire amount of aid received. If the refund is not made,
it shall be recoverable in a civil action from the person who
received the aid, or from anyone who willfully aided such
person to obtain the aid. If an act which would be unlawful
under Section 8A-2 is proven, the court may as a penalty assess
an additional sum of money, not to exceed the entire amount of
aid provided, against the recipient or against any person who
willfully aided the recipient. If assessed, the penalty shall
be included in any judgment entered for the aid received, and
paid to the county department or the local governmental unit,
as the case may be. Upon entry of the judgment a lien shall
attach to all property and assets of such person until the
judgment is satisfied.
(b) Any person, firm, corporation, association, agency,
institution or other legal entity, other than an individual
recipient, that willfully, by means of a false statement or
representation, or by concealment of any material fact or by
other fraudulent scheme or device on behalf of himself or
others, obtains or attempts to obtain benefits or payments
under this Code to which he or it is not entitled, or in a
greater amount than that to which he or it is entitled, shall
be liable for repayment of any excess benefits or payments
received and, in addition to any other penalties provided by
law, civil penalties consisting of (1) the interest on the
amount of excess benefits or payments at the maximum legal
rate in effect on the date the payment was made to such person,
firm, corporation, association, agency, institution or other
legal entity for the period from the date upon which payment
was made to the date upon which repayment is made to the State,
(2) an amount not to exceed 3 times the amount of such excess
benefits or payments, and (3) the sum of $2,000 for each
excessive claim for benefits or payments. Upon entry of a
judgment for repayment of any excess benefits or payments, or
for any civil penalties assessed by the court, a lien shall
attach to all property and assets of such person, firm,
corporation, association, agency, institution or other legal
entity until the judgment is satisfied.
(c) Civil recoveries provided for in this Section may be
recoverable in court proceedings initiated by the Attorney
General or, in actions involving a local governmental unit, by
the State's Attorney.
(d) Any person who commits the offense of vendor fraud or
recipient fraud as defined in Section 8A-2 and Section 8A-3 of
this Article shall forfeit, according to the provisions of
this subsection, any monies, profits or proceeds, and any
interest or property which the sentencing court determines he
has acquired or maintained, directly or indirectly, in whole
or in part as a result of such offense. Such person shall also
forfeit any interest in, securities of, claim against, or
contractual right of any kind which affords him a source of
influence over, any enterprise which he has established,
operated, controlled, conducted, or participated in
conducting, where his relationship to or connection with any
such thing or activity directly or indirectly, in whole or in
part, is traceable to any thing or benefit which he has
obtained or acquired through vendor fraud or recipient fraud.
Proceedings instituted pursuant to this subsection shall
be subject to and conducted in accordance with the following
procedures:
(1) The sentencing court shall, upon petition by the
Attorney General or State's Attorney at any time following
sentencing, conduct a hearing to determine whether any
property or property interest is subject to forfeiture under
this subsection. At the forfeiture hearing the People shall
have the burden of establishing, by a preponderance of the
evidence, that the property or property interests are subject
to such forfeiture.
(2) In any action brought by the People of the State of
Illinois under this Section, in which any restraining order,
injunction or prohibition or any other action in connection
with any property or interest subject to forfeiture under this
subsection is sought, the circuit court presiding over the
trial of the person charged with recipient fraud or vendor
fraud as defined in Sections 8A-2 or 8A-3 of this Article shall
first determine whether there is probable cause to believe
that the person so charged has committed the offense of
recipient fraud or vendor fraud and whether the property or
interest is subject to forfeiture under this subsection. To
make such a determination, prior to entering any such order,
the court shall conduct a hearing without a jury, at which the
People shall establish that there is (i) probable cause that
the person so charged has committed the offense of recipient
fraud or vendor fraud and (ii) probable cause that any
property or interest may be subject to forfeiture pursuant to
this subsection. Such hearing may be conducted simultaneously
with a preliminary hearing, if the prosecution is commenced by
information or complaint, or by motion of the People at any
stage in the proceedings. The court may accept a finding of
probable cause at a preliminary hearing following the filing
of an information charging the offense of recipient fraud or
vendor fraud as defined in Sections 8A-2 or 8A-3 or the return
of an indictment by a grand jury charging the offense of
recipient fraud or vendor fraud as defined in Sections 8A-2 or
8A-3 of this Article as sufficient evidence of probable cause
as provided in item (i) above. Upon such a finding, the circuit
court shall enter such restraining order, injunction or
prohibition, or shall take such other action in connection
with any such property or other interest subject to forfeiture
under this Act as is necessary to insure that such property is
not removed from the jurisdiction of the court, concealed,
destroyed or otherwise disposed of by the owner of that
property or interest prior to a forfeiture hearing under this
subsection. The Attorney General or State's Attorney shall
file a certified copy of such restraining order, injunction or
other prohibition with the recorder of deeds or registrar of
titles of each county where any such property of the defendant
may be located. No such injunction, restraining order or other
prohibition shall affect the rights of any bonafide purchaser,
mortgagee, judgement creditor or other lien holder arising
prior to the date of such filing. The court may, at any time,
upon verified petition by the defendant, conduct a hearing to
determine whether all or portions of any such property or
interest which the court previously determined to be subject
to forfeiture or subject to any restraining order, injunction,
or prohibition or other action, should be released. The court
may in its discretion release such property to the defendant
for good cause shown.
(3) Upon conviction of a person under this Article, the
court shall authorize the Director of the Illinois State
Police to seize all property or other interest declared
forfeited under this subsection upon such terms and conditions
as the court shall deem proper.
(4) The Director of the Illinois State Police is
authorized to sell all property forfeited and seized pursuant
to this subsection, unless such property is required by law to
be destroyed or is harmful to the public. After the deduction
of all requisite expenses of administration and sale, the
court shall order the Director to distribute to the Illinois
Department an amount from the proceeds of the forfeited
property, or monies forfeited or seized, which will satisfy
any unsatisfied court order of restitution entered pursuant to
a conviction under this Article. If the proceeds are less than
the amount necessary to satisfy the order of restitution, the
Director shall distribute to the Illinois Department the
entire amount of the remaining proceeds. The Director shall
distribute any remaining proceeds of such sale, along with any
monies forfeited or seized, in accordance with the following
schedules:
(a) 25% shall be distributed to the unit of local
government whose officers or employees conducted the
investigation into recipient fraud or vendor fraud and caused
the arrest or arrests and prosecution leading to the
forfeiture. Amounts distributed to units of local government
shall be used solely for enforcement matters relating to
detection, investigation or prosecution of recipient fraud or
vendor fraud as defined in Section 8A-2 or 8A-3 of this
Article. Where the investigation, arrest or arrests leading to
the prosecution and forfeiture is undertaken solely by the
Office of the Attorney General Illinois State Police, the
portion provided hereunder shall be paid into the Medicaid
Fraud and Abuse Prevention Fund, which is hereby created in
the State treasury. Monies from this fund shall be used by the
Office of the Attorney General Illinois State Police for the
furtherance of enforcement matters relating to detection,
investigation or prosecution of recipient fraud or vendor
fraud. Monies directed to this fund shall be used in addition
to, and not as a substitute for, funds annually appropriated
to the Office of the Attorney General Illinois State Police
for medicaid fraud enforcement.
(b) 25% shall be distributed to the county in which the
prosecution and petition for forfeiture resulting in the
forfeiture was instituted, and deposited in a special fund in
the county treasury and appropriated to the State's Attorney
for use solely in enforcement matters relating to detection,
investigation or prosecution of recipient fraud or vendor
fraud; however, if the Attorney General brought the
prosecution resulting in the forfeiture, the portion provided
hereunder shall be paid into the Medicaid Fraud and Abuse
Prevention Fund, to be used by the Medicaid Fraud Control Unit
of the Office of the Attorney General Illinois State Police
for enforcement matters relating to detection, investigation
or prosecution of recipient fraud or vendor fraud. Where the
Attorney General and a State's Attorney have jointly
participated in any portion of the proceedings, 12.5% shall be
distributed to the county in which the prosecution resulting
in the forfeiture was instituted, and used as specified
herein, and 12.5% shall be paid into the Medicaid Fraud and
Abuse Prevention Fund, and used as specified herein.
(c) 50% shall be transmitted to the State Treasurer for
deposit in the General Revenue Fund.
(Source: P.A. 102-538, eff. 8-20-21.)
(305 ILCS 5/12-4.41)
Sec. 12-4.41. Public Benefits Fraud Protection Task Force.
(a) Purpose. The purpose of the Public Benefits Fraud
Protection Task Force is to conduct a thorough review of the
nature of public assistance fraud in the State of Illinois; to
ascertain the feasibility of implementing a mechanism to
determine the pervasiveness and frequency of public assistance
fraud; to calculate the detriment of public assistance fraud
to the financial status and socio-economic status of public
aid recipients specifically and Illinois taxpayers generally;
and to determine if more stringent penalties or compassionate
procedures are necessary.
(b) Definitions. As used in this Section:
"Task Force" means the Public Benefits Fraud Protection
Task Force.
"Public assistance" or "public aid" includes, without
limitation, Medicaid, TANF, the Illinois LINK Program, General
Assistance, Transitional Assistance, the Supplemental
Nutrition Assistance Program, and the Child Care Assistance
Program.
(c) The Public Benefits Fraud Protection Task Force. The
Public Benefits Fraud Protection Task Force is created. The
Task Force shall be composed of 17 members appointed as
follows:
(1) One member of the Illinois Senate appointed by the
President of the Senate, who shall be co-chair to the Task
Force;
(2) One member of the Illinois Senate appointed by the
Senate Minority Leader;
(3) One member of the Illinois House of
Representatives appointed by the Speaker of the House of
Representatives, who shall be co-chair to the Task Force;
(4) One member of the Illinois House of
Representatives appointed by the House Minority Leader;
(5) The following persons, or their designees: the
Director of Public Health, the Director of Healthcare and
Family Services, and the Secretary of Human Services;
(6) The Director of the Illinois Department on Aging,
or his or her designee;
(7) The Executive Inspector General appointed by the
Governor, or his or her designee;
(8) The Inspector General of the Illinois Department
of Human Services, or his or her designee;
(9) A representative from the Office of the Attorney
General Illinois State Police Medicaid Fraud Control Unit;
(10) Three persons, who are not currently employed by
a State agency, appointed by the Secretary of Human
Services, one of whom shall be a person with professional
experience in child care issues, one of whom shall be a
person with knowledge and experience in legal aid
services, and one of whom shall be a person with knowledge
and experience in poverty law;
(11) The Attorney General, or his or her designee;
(12) A representative of a union representing front
line State employees who administer public benefits
programs; and
(13) A representative of a statewide business
association.
(d) Compensation and qualifications. Members shall serve
without compensation and shall be adults and residents of
Illinois.
(e) Appointments. Appointments shall be made 90 days from
the effective date of this amendatory Act of the 96th General
Assembly.
(f) Hearings. The Task Force shall solicit comments from
stakeholders and hold public hearings before filing any report
required by this Section. At the public hearings, the Task
Force shall allow interested persons to present their views
and comments. The Task Force shall submit all reports required
by this Section to the Governor and the General Assembly. In
addition to the reports required by this Section, the Task
Force may provide, at its discretion, interim reports and
recommendations. The Department of Human Services shall
provide administrative support to the Task Force.
(g) Task Force duties. The Task Force shall gather
information and make recommendations relating to at least the
following topics in relation to public assistance fraud:
(1) Reviews of provider billing of public aid claims.
(2) Reviews of recipient utilization of public aid.
(3) Protocols for investigating recipient public aid
fraud.
(4) Protocols for investigating provider public aid
fraud.
(5) Reporting of alleged fraud by private citizens
through qui tam actions.
(6) Examination of current fraud prevention measures
which may hinder legitimate aid claims.
(7) Coordination between relevant agencies in fraud
investigation.
(8) Financial audit of the current costs borne by aid
recipients and Illinois government through fraud.
(9) Examination of enhanced penalties for fraudulent
recipients and providers.
(10) Enhanced whistleblower protections.
(11) Voluntary assistance from businesses and
community groups in efforts to curb fraud.
(h) Task Force recommendations. Any of the findings,
recommendations, public postings, and other relevant
information regarding the Task Force shall be made available
on the Department of Human Services' website.
(i) Reporting requirements. The Task Force shall submit
findings and recommendations to the Governor and the General
Assembly by December 31, 2011, including any necessary
implementing legislation, and recommendations for changes to
policies, rules, or procedures that are not incorporated in
the implementing legislation.
(j) Dissolution of Task Force. The Task Force shall be
dissolved 90 days after its report has been submitted to the
Governor's Office and the General Assembly.
(Source: P.A. 96-1346, eff. 1-1-11; 97-333, eff. 8-12-11.)
Section 15. The Illinois False Claims Act is amended by
changing Sections 2, 4, 6, and 8 as follows:
(740 ILCS 175/2) (from Ch. 127, par. 4102)
Sec. 2. Definitions. As used in this Act:
(a) "State" means the State of Illinois; any agency of
State government; the system of State colleges and
universities, any school district, community college district,
county, municipality, municipal corporation, unit of local
government, and any combination of the above under an
intergovernmental agreement that includes provisions for a
governing body of the agency created by the agreement.
(b) "Guard" means the Illinois National Guard.
(c) "Investigation" means any inquiry conducted by any
investigator for the purpose of ascertaining whether any
person is or has been engaged in any violation of this Act.
(d) "Investigator" means a person who is charged by the
Attorney General or the Illinois State Police with the duty of
conducting any investigation under this Act, or any officer or
employee of the State acting under the direction and
supervision of the Attorney General or the Illinois State
Police, in the course of an investigation.
(e) "Documentary material" includes the original or any
copy of any book, record, report, memorandum, paper,
communication, tabulation, chart, or other document, or data
compilations stored in or accessible through computer or other
information retrieval systems, together with instructions and
all other materials necessary to use or interpret such data
compilations, and any product of discovery.
(f) "Custodian" means the custodian, or any deputy
custodian, designated by the Attorney General under subsection
(i)(1) of Section 6.
(g) "Product of discovery" includes:
(1) the original or duplicate of any deposition,
interrogatory, document, thing, result of the inspection
of land or other property, examination, or admission,
which is obtained by any method of discovery in any
judicial or administrative proceeding of an adversarial
nature;
(2) any digest, analysis, selection, compilation, or
derivation of any item listed in paragraph (1); and
(3) any index or other manner of access to any item
listed in paragraph (1).
(Source: P.A. 102-538, eff. 8-20-21.)
(740 ILCS 175/4) (from Ch. 127, par. 4104)
Sec. 4. Civil actions for false claims.
(a) Responsibilities of the Attorney General and the
Illinois State Police. The Attorney General or the Illinois
State Police shall diligently investigate a civil violation
under Section 3. If the Attorney General finds that a person
violated or is violating Section 3, the Attorney General may
bring a civil action under this Section against the person.
The State shall receive an amount for reasonable expenses
that the court finds to have been necessarily incurred by the
Attorney General, including reasonable attorneys' fees and
costs. All such expenses, fees, and costs shall be awarded
against the defendant. The court may award amounts from the
proceeds of an action or settlement that it considers
appropriate to any governmental entity or program that has
been adversely affected by a defendant. The Attorney General,
if necessary, shall direct the State Treasurer to make a
disbursement of funds as provided in court orders or
settlement agreements.
(b) Actions by private persons.
(1) A person may bring a civil action for a violation
of Section 3 for the person and for the State. The action
shall be brought in the name of the State. The action may
be dismissed only if the court and the Attorney General
give written consent to the dismissal and their reasons
for consenting.
(2) A copy of the complaint and written disclosure of
substantially all material evidence and information the
person possesses shall be served on the State. The
complaint shall be filed in camera, shall remain under
seal for at least 60 days, and shall not be served on the
defendant until the court so orders. The State may elect
to intervene and proceed with the action within 60 days
after it receives both the complaint and the material
evidence and information.
(3) The State may, for good cause shown, move the
court for extensions of the time during which the
complaint remains under seal under paragraph (2). Any such
motions may be supported by affidavits or other
submissions in camera. The defendant shall not be required
to respond to any complaint filed under this Section until
20 days after the complaint is unsealed and served upon
the defendant.
(4) Before the expiration of the 60-day period or any
extensions obtained under paragraph (3), the State shall:
(A) proceed with the action, in which case the
action shall be conducted by the State; or
(B) notify the court that it declines to take over
the action, in which case the person bringing the
action shall have the right to conduct the action.
(5) When a person brings an action under this
subsection (b), no person other than the State may
intervene or bring a related action based on the facts
underlying the pending action.
(c) Rights of the parties to Qui Tam actions.
(1) If the State proceeds with the action, it shall
have the primary responsibility for prosecuting the
action, and shall not be bound by an act of the person
bringing the action. Such person shall have the right to
continue as a party to the action, subject to the
limitations set forth in paragraph (2).
(2)(A) The State may dismiss the action
notwithstanding the objections of the person initiating
the action if the person has been notified by the State of
the filing of the motion and the court has provided the
person with an opportunity for a hearing on the motion.
(B) The State may settle the action with the defendant
notwithstanding the objections of the person initiating
the action if the court determines, after a hearing, that
the proposed settlement is fair, adequate, and reasonable
under all the circumstances. Upon a showing of good cause,
such hearing may be held in camera.
(C) Upon a showing by the State that unrestricted
participation during the course of the litigation by the
person initiating the action would interfere with or
unduly delay the State's prosecution of the case, or would
be repetitious, irrelevant, or for purposes of harassment,
the court may, in its discretion, impose limitations on
the person's participation, such as:
(i) limiting the number of witnesses the person
may call:
(ii) limiting the length of the testimony of such
witnesses;
(iii) limiting the person's cross-examination of
witnesses; or
(iv) otherwise limiting the participation by the
person in the litigation.
(D) Upon a showing by the defendant that unrestricted
participation during the course of the litigation by the
person initiating the action would be for purposes of
harassment or would cause the defendant undue burden or
unnecessary expense, the court may limit the participation
by the person in the litigation.
(3) If the State elects not to proceed with the
action, the person who initiated the action shall have the
right to conduct the action. If the State so requests, it
shall be served with copies of all pleadings filed in the
action and shall be supplied with copies of all deposition
transcripts (at the State's expense). When a person
proceeds with the action, the court, without limiting the
status and rights of the person initiating the action, may
nevertheless permit the State to intervene at a later date
upon a showing of good cause.
(4) Whether or not the State proceeds with the action,
upon a showing by the State that certain actions of
discovery by the person initiating the action would
interfere with the State's investigation or prosecution of
a criminal or civil matter arising out of the same facts,
the court may stay such discovery for a period of not more
than 60 days. Such a showing shall be conducted in camera.
The court may extend the 60-day period upon a further
showing in camera that the State has pursued the criminal
or civil investigation or proceedings with reasonable
diligence and any proposed discovery in the civil action
will interfere with the ongoing criminal or civil
investigation or proceedings.
(5) Notwithstanding subsection (b), the State may
elect to pursue its claim through any alternate remedy
available to the State, including any administrative
proceeding to determine a civil money penalty. If any such
alternate remedy is pursued in another proceeding, the
person initiating the action shall have the same rights in
such proceeding as such person would have had if the
action had continued under this Section. Any finding of
fact or conclusion of law made in such other proceeding
that has become final shall be conclusive on all parties
to an action under this Section. For purposes of the
preceding sentence, a finding or conclusion is final if it
has been finally determined on appeal to the appropriate
court, if all time for filing such an appeal with respect
to the finding or conclusion has expired, or if the
finding or conclusion is not subject to judicial review.
(d) Award to Qui Tam plaintiff.
(1) If the State proceeds with an action brought by a
person under subsection (b), such person shall, subject to
the second sentence of this paragraph, receive at least
15% but not more than 25% of the proceeds of the action or
settlement of the claim, depending upon the extent to
which the person substantially contributed to the
prosecution of the action. Where the action is one which
the court finds to be based primarily on disclosures of
specific information (other than information provided by
the person bringing the action) relating to allegations or
transactions in a criminal, civil, or administrative
hearing, in a legislative, administrative, or Auditor
General's report, hearing, audit, or investigation, or
from the news media, the court may award such sums as it
considers appropriate, but in no case more than 10% of the
proceeds, taking into account the significance of the
information and the role of the person bringing the action
in advancing the case to litigation. Any payment to a
person under the first or second sentence of this
paragraph (1) shall be made from the proceeds. Any such
person shall also receive an amount for reasonable
expenses which the court finds to have been necessarily
incurred, plus reasonable attorneys' fees and costs. The
State shall also receive an amount for reasonable expenses
which the court finds to have been necessarily incurred by
the Attorney General, including reasonable attorneys' fees
and costs. All such expenses, fees, and costs shall be
awarded against the defendant. The court may award amounts
from the proceeds of an action or settlement that it
considers appropriate to any governmental entity or
program that has been adversely affected by a defendant.
The Attorney General, if necessary, shall direct the State
Treasurer to make a disbursement of funds as provided in
court orders or settlement agreements.
(2) If the State does not proceed with an action under
this Section, the person bringing the action or settling
the claim shall receive an amount which the court decides
is reasonable for collecting the civil penalty and
damages. The amount shall be not less than 25% and not more
than 30% of the proceeds of the action or settlement and
shall be paid out of such proceeds. Such person shall also
receive an amount for reasonable expenses which the court
finds to have been necessarily incurred, plus reasonable
attorneys' fees and costs. All such expenses, fees, and
costs shall be awarded against the defendant. The court
may award amounts from the proceeds of an action or
settlement that it considers appropriate to any
governmental entity or program that has been adversely
affected by a defendant. The Attorney General, if
necessary, shall direct the State Treasurer to make a
disbursement of funds as provided in court orders or
settlement agreements.
(3) Whether or not the State proceeds with the action,
if the court finds that the action was brought by a person
who planned and initiated the violation of Section 3 upon
which the action was brought, then the court may, to the
extent the court considers appropriate, reduce the share
of the proceeds of the action which the person would
otherwise receive under paragraph (1) or (2) of this
subsection (d), taking into account the role of that
person in advancing the case to litigation and any
relevant circumstances pertaining to the violation. If the
person bringing the action is convicted of criminal
conduct arising from his or her role in the violation of
Section 3, that person shall be dismissed from the civil
action and shall not receive any share of the proceeds of
the action. Such dismissal shall not prejudice the right
of the State to continue the action, represented by the
Attorney General.
(4) If the State does not proceed with the action and
the person bringing the action conducts the action, the
court may award to the defendant its reasonable attorneys'
fees and expenses if the defendant prevails in the action
and the court finds that the claim of the person bringing
the action was clearly frivolous, clearly vexatious, or
brought primarily for purposes of harassment.
(e) Certain actions barred.
(1) No court shall have jurisdiction over an action
brought by a former or present member of the Guard under
subsection (b) of this Section against a member of the
Guard arising out of such person's service in the Guard.
(2)(A) No court shall have jurisdiction over an action
brought under subsection (b) against a member of the
General Assembly, a member of the judiciary, or an exempt
official if the action is based on evidence or information
known to the State when the action was brought.
(B) For purposes of this paragraph (2), "exempt
official" means any of the following officials in State
service: directors of departments established under the
Civil Administrative Code of Illinois, the Adjutant
General, the Assistant Adjutant General, the Director of
the State Emergency Services and Disaster Agency, members
of the boards and commissions, and all other positions
appointed by the Governor by and with the consent of the
Senate.
(3) In no event may a person bring an action under
subsection (b) which is based upon allegations or
transactions which are the subject of a civil suit or an
administrative civil money penalty proceeding in which the
State is already a party.
(4)(A) The court shall dismiss an action or claim
under this Section, unless opposed by the State, if
substantially the same allegations or transactions as
alleged in the action or claim were publicly disclosed:
(i) in a criminal, civil, or administrative
hearing in which the State or its agent is a party;
(ii) in a State legislative, State Auditor
General, or other State report, hearing, audit, or
investigation; or
(iii) from the news media,
unless the action is brought by the Attorney General or
the person bringing the action is an original source of
the information.
(B) For purposes of this paragraph (4), "original
source" means an individual who either (i) prior to a
public disclosure under subparagraph (A) of this paragraph
(4), has voluntarily disclosed to the State the
information on which allegations or transactions in a
claim are based, or (ii) has knowledge that is independent
of and materially adds to the publicly disclosed
allegations or transactions, and who has voluntarily
provided the information to the State before filing an
action under this Section.
(f) State not liable for certain expenses. The State is
not liable for expenses which a person incurs in bringing an
action under this Section.
(g) Relief from retaliatory actions.
(1) In general, any employee, contractor, or agent
shall be entitled to all relief necessary to make that
employee, contractor, or agent whole, if that employee,
contractor, or agent is discharged, demoted, suspended,
threatened, harassed, or in any other manner discriminated
against in the terms and conditions of employment because
of lawful acts done by the employee, contractor, agent, or
associated others in furtherance of an action under this
Section or other efforts to stop one or more violations of
this Act.
(2) Relief under paragraph (1) shall include
reinstatement with the same seniority status that the
employee, contractor, or agent would have had but for the
discrimination, 2 times the amount of back pay, interest
on the back pay, and compensation for any special damages
sustained as a result of the discrimination, including
litigation costs and reasonable attorneys' fees. An action
under this subsection (g) may be brought in the
appropriate circuit court for the relief provided in this
subsection (g).
(3) A civil action under this subsection may not be
brought more than 3 years after the date when the
retaliation occurred.
(Source: P.A. 102-538, eff. 8-20-21.)
(740 ILCS 175/6) (from Ch. 127, par. 4106)
Sec. 6. Subpoenas.
(a) In general.
(1) Issuance and service. Whenever the Attorney
General, or a designee (for purposes of this Section), has
reason to believe that any person may be in possession,
custody, or control of any documentary material or
information relevant to an investigation, the Attorney
General, or a designee, may, before commencing a civil
proceeding under this Act or making an election under
paragraph (4) of subsection (b) of Section 4, issue in
writing and cause to be served upon such person, a
subpoena requiring such person:
(A) to produce such documentary material for
inspection and copying,
(B) to answer, in writing, written interrogatories
with respect to such documentary material or
information,
(C) to give oral testimony concerning such
documentary material or information, or
(D) to furnish any combination of such material,
answers, or testimony.
The Attorney General may delegate the authority to issue
subpoenas under this subsection (a) to the Department of
State Police subject to conditions as the Attorney General
deems appropriate. Whenever a subpoena is an express
demand for any product of discovery, the Attorney General
or his or her delegate shall cause to be served, in any
manner authorized by this Section, a copy of such demand
upon the person from whom the discovery was obtained and
shall notify the person to whom such demand is issued of
the date on which such copy was served. Any information
obtained by the Attorney General or a designee under this
Section may be shared with any qui tam relator if the
Attorney General or designee determines it necessary as
part of any False Claims Act investigation.
(1.5) Where a subpoena requires the production of
documentary material, the respondent shall produce the
original of the documentary material, provided, however,
that the Attorney General, or a designee, may agree that
copies may be substituted for the originals. All
documentary material kept or stored in electronic form,
including electronic mail, shall be produced in native
format, as kept in the normal course of business, or as
otherwise directed by the Attorney General or designee.
The production of documentary material shall be made at
the respondent's expense.
(2) Contents and deadlines. Each subpoena issued under
paragraph (1):
(A) Shall state the nature of the conduct
constituting an alleged violation that is under
investigation and the applicable provision of law
alleged to be violated.
(B) Shall identify the individual causing the
subpoena to be served and to whom communications
regarding the subpoena should be directed.
(C) Shall state the date, place, and time at which
the person is required to appear, produce written
answers to interrogatories, produce documentary
material or give oral testimony. The date shall not be
less than 10 days from the date of service of the
subpoena. Compliance with the subpoena shall be at the
Office of the Attorney General in either the
Springfield or Chicago location or at other location
by agreement.
(D) If the subpoena is for documentary material or
interrogatories, shall describe the documents or
information requested with specificity.
(E) Shall notify the person of the right to be
assisted by counsel.
(F) Shall advise that the person has 20 days from
the date of service or up until the return date
specified in the demand, whichever date is earlier, to
move, modify, or set aside the subpoena pursuant to
subparagraph (j)(2)(A) of this Section.
(b) Protected material or information.
(1) In general. A subpoena issued under subsection (a)
may not require the production of any documentary
material, the submission of any answers to written
interrogatories, or the giving of any oral testimony if
such material, answers, or testimony would be protected
from disclosure under:
(A) the standards applicable to subpoenas or
subpoenas duces tecum issued by a court of this State
to aid in a grand jury investigation; or
(B) the standards applicable to discovery requests
under the Code of Civil Procedure, to the extent that
the application of such standards to any such subpoena
is appropriate and consistent with the provisions and
purposes of this Section.
(2) Effect on other orders, rules, and laws. Any such
subpoena which is an express demand for any product of
discovery supersedes any inconsistent order, rule, or
provision of law (other than this Section) preventing or
restraining disclosure of such product of discovery to any
person. Disclosure of any product of discovery pursuant to
any such subpoena does not constitute a waiver of any
right or privilege which the person making such disclosure
may be entitled to invoke to resist discovery of trial
preparation materials.
(c) Service in general. Any subpoena issued under
subsection (a) may be served by any person so authorized by the
Attorney General or by any person authorized to serve process
on individuals within Illinois, through any method prescribed
in the Code of Civil Procedure or as otherwise set forth in
this Act.
(d) Service upon legal entities and natural persons.
(1) Legal entities. Service of any subpoena issued
under subsection (a) or of any petition filed under
subsection (j) may be made upon a partnership,
corporation, association, or other legal entity by:
(A) delivering an executed copy of such subpoena
or petition to any partner, executive officer,
managing agent, general agent, or registered agent of
the partnership, corporation, association or entity;
(B) delivering an executed copy of such subpoena
or petition to the principal office or place of
business of the partnership, corporation, association,
or entity; or
(C) depositing an executed copy of such subpoena
or petition in the United States mails by registered
or certified mail, with a return receipt requested,
addressed to such partnership, corporation,
association, or entity as its principal office or
place of business.
(2) Natural person. Service of any such subpoena or
petition may be made upon any natural person by:
(A) delivering an executed copy of such subpoena
or petition to the person; or
(B) depositing an executed copy of such subpoena
or petition in the United States mails by registered
or certified mail, with a return receipt requested,
addressed to the person at the person's residence or
principal office or place of business.
(e) Proof of service. A verified return by the individual
serving any subpoena issued under subsection (a) or any
petition filed under subsection (j) setting forth the manner
of such service shall be proof of such service. In the case of
service by registered or certified mail, such return shall be
accompanied by the return post office receipt of delivery of
such subpoena.
(f) Documentary material.
(1) Sworn certificates. The production of documentary
material in response to a subpoena served under this
Section shall be made under a sworn certificate, in such
form as the subpoena designates, by:
(A) in the case of a natural person, the person to
whom the subpoena is directed, or
(B) in the case of a person other than a natural
person, a person having knowledge of the facts and
circumstances relating to such production and
authorized to act on behalf of such person.
The certificate shall state that all of the documentary
material required by the demand and in the possession,
custody, or control of the person to whom the subpoena is
directed has been produced and made available to the
Attorney General.
(2) Production of materials. Any person upon whom any
subpoena for the production of documentary material has
been served under this Section shall make such material
available for inspection and copying to the Attorney
General at the place designated in the subpoena, or at
such other place as the Attorney General and the person
thereafter may agree and prescribe in writing, or as the
court may direct under subsection (j)(1). Such material
shall be made so available on the return date specified in
such subpoena, or on such later date as the Attorney
General may prescribe in writing. Such person may, upon
written agreement between the person and the Attorney
General, substitute copies for originals of all or any
part of such material.
(g) Interrogatories. Each interrogatory in a subpoena
served under this Section shall be answered separately and
fully in writing under oath and shall be submitted under a
sworn certificate, in such form as the subpoena designates by:
(1) in the case of a natural person, the person to whom
the subpoena is directed, or
(2) in the case of a person other than a natural
person, the person or persons responsible for answering
each interrogatory.
If any interrogatory is objected to, the reasons for the
objection shall be stated in the certificate instead of an
answer. The certificate shall state that all information
required by the subpoena and in the possession, custody,
control, or knowledge of the person to whom the demand is
directed has been submitted. To the extent that any
information is not furnished, the information shall be
identified and reasons set forth with particularity regarding
the reasons why the information was not furnished.
(h) Oral examinations.
(1) Procedures. The examination of any person pursuant
to a subpoena for oral testimony served under this Section
shall be taken before an officer authorized to administer
oaths and affirmations by the laws of this State or of the
place where the examination is held. The officer before
whom the testimony is to be taken shall put the witness on
oath or affirmation and shall, personally or by someone
acting under the direction of the officer and in the
officer's presence, record the testimony of the witness.
The testimony shall be taken stenographically and shall be
transcribed. When the testimony is fully transcribed, the
officer before whom the testimony is taken shall promptly
transmit a certified copy of the transcript of the
testimony in accordance with the instructions of the
Attorney General. This subsection shall not preclude the
taking of testimony by any means authorized by, and in a
manner consistent with, the Code of Civil Procedure.
(2) Persons present. The investigator conducting the
examination shall exclude from the place where the
examination is held all persons except the person giving
the testimony, the attorney for and any other
representative of the person giving the testimony, the
attorney for the State, any person who may be agreed upon
by the attorney for the State and the person giving the
testimony, the officer before whom the testimony is to be
taken, and any stenographer taking such testimony.
(3) Where testimony taken. The oral testimony of any
person taken pursuant to a subpoena served under this
Section shall be taken in the county within which such
person resides, is found, or transacts business, or in
such other place as may be agreed upon by the Attorney
General and such person.
(4) Transcript of testimony. When the testimony is
fully transcribed, the Attorney General or the officer
before whom the testimony is taken shall afford the
witness, who may be accompanied by counsel, a reasonable
opportunity to review and correct the transcript, in
accordance with the rules applicable to deposition
witnesses in civil cases. Upon payment of reasonable
charges, the Attorney General shall furnish a copy of the
transcript to the witness, except that the Attorney
General may, for good cause, limit the witness to
inspection of the official transcript of the witness'
testimony.
(5) Conduct of oral testimony.
(A) Any person compelled to appear for oral
testimony under a subpoena issued under subsection (a)
may be accompanied, represented, and advised by
counsel, who may raise objections based on matters of
privilege in accordance with the rules applicable to
depositions in civil cases. If such person refuses to
answer any question, a petition may be filed in
circuit court under subsection (j)(1) for an order
compelling such person to answer such question.
(B) If such person refuses any question on the
grounds of the privilege against self-incrimination,
the testimony of such person may be compelled in
accordance with Article 106 of the Code of Criminal
Procedure of 1963.
(6) Witness fees and allowances. Any person appearing
for oral testimony under a subpoena issued under
subsection (a) shall be entitled to the same fees and
allowances which are paid to witnesses in the circuit
court.
(i) Custodians of documents, answers, and transcripts.
(1) Designation. The Attorney General or his or her
delegate shall serve as custodian of documentary material,
answers to interrogatories, and transcripts of oral
testimony received under this Section.
(2) Except as otherwise provided in this Section, no
documentary material, answers to interrogatories, or
transcripts of oral testimony, or copies thereof, while in
the possession of the custodian, shall be available for
examination by any individual, except as determined
necessary by the Attorney General and subject to the
conditions imposed by him or her for effective enforcement
of the laws of this State, or as otherwise provided by
court order.
(3) Conditions for return of material. If any
documentary material has been produced by any person in
the course of any investigation pursuant to a subpoena
under this Section and:
(A) any case or proceeding before the court or
grand jury arising out of such investigation, or any
proceeding before any State agency involving such
material, has been completed, or
(B) no case or proceeding in which such material
may be used has been commenced within a reasonable
time after completion of the examination and analysis
of all documentary material and other information
assembled in the course of such investigation,
the custodian shall, upon written request of the person
who produced such material, return to such person any such
material which has not passed into the control of any
court, grand jury, or agency through introduction into the
record of such case or proceeding.
(j) Judicial proceedings.
(1) Petition for enforcement. Whenever any person
fails to comply with any subpoena issued under subsection
(a), or whenever satisfactory copying or reproduction of
any material requested in such demand cannot be done and
such person refuses to surrender such material, the
Attorney General may file, in the circuit court of any
county in which such person resides, is found, or
transacts business, or the circuit court of the county in
which an action filed pursuant to Section 4 of this Act is
pending if the action relates to the subject matter of the
subpoena and serve upon such person a petition for an
order of such court for the enforcement of the subpoena.
(2) Petition to modify or set aside subpoena.
(A) Any person who has received a subpoena issued
under subsection (a) may file, in the circuit court of
any county within which such person resides, is found,
or transacts business, and serve upon the Attorney
General a petition for an order of the court to modify
or set aside such subpoena. In the case of a petition
addressed to an express demand for any product of
discovery, a petition to modify or set aside such
demand may be brought only in the circuit court of the
county in which the proceeding in which such discovery
was obtained is or was last pending. Any petition
under this subparagraph (A) must be filed:
(i) within 20 days after the date of service
of the subpoena, or at any time before the return
date specified in the subpoena, whichever date is
earlier, or
(ii) within such longer period as may be
prescribed in writing by the Attorney General.
(B) The petition shall specify each ground upon
which the petitioner relies in seeking relief under
subparagraph (A), and may be based upon any failure of
the subpoena to comply with the provisions of this
Section or upon any constitutional or other legal
right or privilege of such person. During the pendency
of the petition in the court, the court may stay, as it
deems proper, the running of the time allowed for
compliance with the subpoena, in whole or in part,
except that the person filing the petition shall
comply with any portion of the subpoena not sought to
be modified or set aside.
(3) Petition to modify or set aside demand for product
of discovery. In the case of any subpoena issued under
subsection (a) which is an express demand for any product
of discovery, the person from whom such discovery was
obtained may file, in the circuit court of the county in
which the proceeding in which such discovery was obtained
is or was last pending, a petition for an order of such
court to modify or set aside those portions of the
subpoena requiring production of any such product of
discovery, subject to the same terms, conditions, and
limitations set forth in subparagraph (j)(2) of this
Section.
(4) Jurisdiction. Whenever any petition is filed in
any circuit court under this subsection (j), such court
shall have jurisdiction to hear and determine the matter
so presented, and to enter such orders as may be required
to carry out the provisions of this Section. Any final
order so entered shall be subject to appeal in the same
manner as appeals of other final orders in civil matters.
Any disobedience of any final order entered under this
Section by any court shall be punished as a contempt of the
court.
(k) Disclosure exemption. Any documentary material,
answers to written interrogatories, or oral testimony provided
under any subpoena issued under subsection (a) shall be exempt
from disclosure under the Illinois Administrative Procedure
Act.
(Source: P.A. 96-1304, eff. 7-27-10.)
(740 ILCS 175/8) (from Ch. 127, par. 4108)
Sec. 8. Funds; Grants.
(a) There is hereby created the State Whistleblower Reward
and Protection Fund to be held outside of the State Treasury
with the State Treasurer as custodian. All proceeds of an
action or settlement of a claim brought under this Act shall be
deposited in the Fund. Any attorneys' fees, expenses, and
costs paid by or awarded against any defendant pursuant to
Section 4 of this Act shall not be considered part of the
proceeds to be deposited in the Fund.
(b) For all cases resolved before October 1, 2023, monies
Monies in the Fund shall be allocated as follows: One-sixth of
the monies shall be paid to the Attorney General Whistleblower
Reward and Protection Fund, which is hereby created as a
special fund in the State Treasury, and one-sixth of the
monies shall be paid to the State Police Whistleblower Reward
and Protection Fund, which is hereby created as a special fund
in the State Treasury, for State law enforcement purposes. The
remaining two-thirds of the monies in the Fund shall be used
for payment of awards to Qui Tam plaintiffs and as otherwise
specified in this Act, with any remainder to the General
Revenue Fund. The Attorney General shall direct the State
Treasurer to make disbursement of funds.
(c) For all cases resolved on or after October 1, 2023,
monies in the Fund shall be allocated as follows: One-third of
the monies shall be paid to the Attorney General Whistleblower
Reward and Protection Fund. The remaining two-thirds of the
monies in the Fund shall be used for payment of awards to Qui
Tam plaintiffs and as otherwise specified in this Act, with
any remainder to the General Revenue Fund. The Attorney
General shall direct the State Treasurer to make disbursement
of funds.
(Source: P.A. 101-148, eff. 7-26-19.)